Transcript Energy Efficiency Technical Reports

State of New Mexico
Rural Development Business &
Cooperative Programs
USDA Rural Development
9007 Renewable Energy for
America Program (REAP)
July, 2009
U.S. Department Of Agriculture
Rural Development
• Mission: To increase economic opportunity
and improve the quality of life for rural
Americans
Rural Development
Over 40 grant, direct loan, and guaranteed loan
programs to finance housing, businesses,
and infrastructure in rural areas.
Program Areas:
• Rural Housing Programs
• Rural Utility Programs
• Rural Business and Cooperative Programs
9007 Renewable Energy for America
Program (REAP)
Grants and Loan Guarantees
Purpose: Provide financial assistance
to agricultural producers and rural
small businesses for the purpose of
purchasing and installing
1. Energy efficiency improvement*
projects
2. Renewable energy* systems
9007 Renewable Energy for America
Program (REAP)
Grant Only
Feasibility Study - $50,000 or 25% of
project (whichever is less)
9007 Renewable Energy for America
Program (REAP)
Eligible Borrowers
• Agricultural producers* or a rural*
small businesses*
• US Citizens or entities with at least 51%
ownership by US Citizens or legally
admitted for permanent residence
9007 Renewable Energy for America
Program (REAP)
– General Rule of Thumb
• Wholesale –generally not more than 100 employees
• Retail –generally not more than $6.5 million average
annual sales. (3 year annual average)
• Service –generally not more than $6.5 million average
annual sales (some as high as $32.5 million)
• Manufacturing –generally not more than 500 employees
(some as high as 1,500 employees)
• Mining –not more than 500 employees
• Construction –generally not more than $31 million
average annual sales. (some as low as 6.5 million)
9007 Renewable Energy for America
Program (REAP)
Project Eligibility
• Must be located in a rural area
• Pre-commercial* or commercially
available* and replicable technology
• Sufficient revenues to provide for
operations and maintenance
9007 Renewable Energy for America
Program (REAP)
Project Eligibility:
• Energy Efficiency—improvements that
reduce energy consumption or energy
consumed per square foot or unit
processed
– Facilities
– Buildings
– Processes
9007 Renewable Energy for America
Program (REAP)
Project Eligibility (cont.)
• Renewable Energy Systems—produce
or produce and deliver energy from:
– Wind
– Solar (Electric and Thermal)
– Biomass, including anaerobic digesters
– Geothermal (Electrical and Direct Use)
– Hydrogen (production from renewable)
Projects that are NOT Eligible
• Residential improvements
• Energy efficiency improvements related
to new construction
• Agricultural tillage equipment
• Vehicles
9007 Renewable Energy for America
Program (REAP)
Guaranteed Loan and Grant Funding
• Guaranteed loans and Guaranteed
Loan/Grant combination are limited to 75% of
eligible project cost, NTE $25 MM loan
• Grants are limited to 25% of eligible project
cost, NTE $500,000 grant for renewable
energy and $250,000 for energy efficiency
projects
9007 Renewable Energy for America
Program (REAP)
Loan Guarantees
• 85% guarantee for loans ≤ $600,000
• 80% guarantee for loans ≤ $5 MM
• 70% guarantee for loans ≤ $10 MM
• 60% guarantee for loans > $10 MM
9007 Renewable Energy for America
Program (REAP)
Interest Rates
• Rates are negotiated between lender and
borrower
• Fixed or variable
Loan Terms
• 7 years max. for Working Capital
• 20 years max. for M&E
• 30 years max. for Real Estate
9007 Renewable Energy for America
Program (REAP)
Applications
• Application for Loan Note Guarantee
Simplified App for loans ≤ $600,000
• Lender’s commercial loan application and
analysis
• Environmental Report
• Technical Report/Energy Audit
• Feasibility Study
Technical Reports
• Follows standard project development
process
• Process distilled to 10 discrete
elements
• Each element custom tailored to
technology and scale
Technical Requirements
10 Sections
•
•
•
•
•
•
•
•
•
•
Qualifications of project team
Agreements and permits
Resource assessment
Design and engineering
Project development schedule
Financial feasibility
Equipment procurement
Equipment installation
Operations and maintenance
Decommissioning
Energy Audit
• Critical to Technical Report
– Provides basis for energy savings and
financial feasibility
– Information in the Audit can be referenced,
rather than repeated, in the Technical Report
• Who conducts them?
– “Certified Energy Manager or Professional
Engineer”
Understanding
the Technical Review Process
Understanding
the Technical Review Process
• Step 1: Application received by State Office
– State conducts preliminary eligibility determination
• Step 2: State submits proposal to NREL/State Engineer
– Coordinators verify basic technical data
• Type of technology
• Complete technical information
• Energy audit/feasibility study are included if required
• Step 3: Complete applications sent to reviewers with
deadline for review
– Reviewer roster consists of dozens of nationally recognized
technical experts
– Technology networks are small - confidentiality is very important
Understanding
the Technical Review Process
• Step 4: Reviewer determines technical feasibility
• Step 5: Reviewer assigns Technical Merit Score
to technically feasible projects
• Step 6: Reviewer calculates recommended
scores
– Quantity of Energy Produced/Saved/Replaced,
– Commercial Availability
– Return on Investment
Understanding
the Technical Review Process
• Step 7: Initially failed projects assigned to
secondary reviewer
• Step 8: Initially failed projects undergo
consensus process between reviewers
before final technical feasibility
determination is assigned
Application Deadlines
Applications are due to NM RD State Office:
• Grants = July 31, 2009
• Guaranteed Loans = July 31, 2009
• Combination Guaranteed Loan/Grant =
July 31, 2009
Section 9006 Funding Activity FY 2003 thru 2007
Renewable Energy/Energy Efficiency
Technology
Biomass
Wind
Solar
Geothermal
Hybrid
No.
249
199
49
26
14
Amount
$ 135,612,303
36,481,754
1,862,651
1,461,337
2,529,700
RE Subtotal
537
$177,947,745
$1,157,080,009
Energy Efficiency
875
$20,703,966
$48,343,062
Grand Total
1,412
$198,651,711
Leveraged
$458,692,476
504,739,962
4,519,509
3,463,084
185,664,978
$1,205,423,071
Section 9006 Funding Activity FY 2003 thru 2007
Renewable Energy/Energy Efficiency
Award
Type
Grant
Guar. Loan
No.
1,115
Grant
$95,153,871
9
Combination 144
$11,967,985
Guar. Loan
Leveraged
$985,265,349
Average Award
$85,340
$70,820,000
$176,184,000
$7,868,889
$20,709,855
$ 43,973,722
$226,929
Additional Information
USDA Rural Development 9007
Renewable Energy for America Program
(REAP) Website
www.rurdev.usda.gov/rbs/farmbill/index.html
How to Contact Us
G. Mike McDow, Director
Business & Cooperative Programs
6200 Jefferson St. NE Room 255
Albuquerque, NM 87109
(505)761-4953
Renewable Energy Coordinator
Jesse Bopp
6200 Jefferson St. NE Room 255
Albuquerque, Nm 87109
(505)761-4952
[email protected]